|BSE: 524634||Sector: Industrials|
|NSE: N.A.||ISIN Code: INE058F01019|
|BSE 00:00 | 01 Dec||312.75||
|NSE 05:30 | 01 Jan||Alufluoride Ltd|
|Mkt Cap.(Rs cr)||245|
|Mkt Cap.(Rs cr)||244.57|
Alufluoride Ltd. (ALUFLUORIDE) - Auditors Report
Company auditors report
The Members of
Alufluoride Limited Visakhapatnam AP
Report on the Audit of the Financial Statements
We have audited the accompanying standalone financial statements ofALUFLUORIDE LIMITED ("the Company") which comprise the Balance Sheet as atMarch 31 2022 the Statement of Profit and Loss (including Other Comprehensive Income)the Statement of Changes in Equity and the Statement of Cash Flows for the year ended onthat date and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the financial statements").
In our opinion and to the best of our information and according to theexplanations given to us the accompanying standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other Accounting Principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2022the profit and total comprehensive income changes in equity and its cash flows for theyear ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing (SAs) specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Financial Statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the Instituteof Chartered Accountants of India (ICAI) together with the ethical requirements that arerelevant to our audit of the financial statements under the provisions of the Act and theRules made thereunder and we have fulfilled our other ethical responsibilities inaccordance with these requirements and the ICAI's Code of Ethics. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the standalone financial statements.
Key Audit Matter:
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.
Information Other than the Standalone Financial Statements andAuditor's Report Thereon
The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theManagement Discussion and Analysis Board of Directors' Report including Annexures toBoard's Report Business Responsibility Report Corporate Governance and Shareholder'sInformation but does not include the financial statements and our auditor's reportthereon.
Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained during the course of our audit or otherwise appears to be materiallymisstated.
When we read the above specified reports if we conclude that there isa material misstatement therein we are required to communicate the matter to thosecharged with governance. We have nothing to report in this regard.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
The Board of Directors is responsible for overseeing the Company'sfinancial reporting process.
Auditor's Responsibilities for the Audit of the Standalone FinancialStatements
Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the
Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.
Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the standalone financialstatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the standalone financialstatements.
We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government in terms of Section 143(11) ofthe Act we give in "Annexure- A" a statement on the matters specified inparagraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act based on our audit wereport that:
a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.
b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.
c) The standalone Balance Sheet the standalone Statement of Profit andLoss including Other Comprehensive Income standalone Statement of Changes in Equity andthe standalone Statement of Cash Flow dealt with by this Report are in agreement with therelevant books of account.
d) In our opinion the aforesaid standalone financial statements complywith the Ind AS specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e) On the basis of the written representations received from thedirectors as on March 312022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director in termsof Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting
g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended:
The remuneration paid to the Directors by the company is in accordancewith the provisions of the sec.197.
h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:
i. The Company does not have any major pending litigations that wouldimpact its financial position.
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.
iii. There has been no delays in transferring amounts required to betransferred to the "Investor Education and Protection Fund" by the Company.
iv. a. The Management has represented that to the best of itsknowledge and belief except as disclosed in the note 5.42 (A) to the accounts no fundshave been advanced or loaned or invested (either from borrowed funds or share premium orany other sources or kind of funds) by the Company to or in any other person(s) orentity(i.e.) including foreign entities ("Intermediaries") with theunderstanding whether recorded in writing or otherwise that the Intermediary shalldirectly or indirectly lend or invest in other persons or entities identified in anymanner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") orprovide any guarantee security or the like on behalf of the Ultimate Beneficiaries.
b. The Management has represented that to the best of its knowledgeand belief as disclosed in the note 5.42 (B) to the accounts no funds have been receivedby the Company from any person(s) or entity(i. e) including foreign entities("Funding Parties") with the understanding whether recorded in writing orotherwise that the Company shall directly or indirectly lend or invest in other personsor entities identified in any manner whatsoever by or on behalf of the Funding Party("Ultimate Beneficiaries") or provide any guarantee security or the like onbehalf of the Ultimate Beneficiaries.
c. Based on the audit procedures performed that have been consideredreasonable and appropriate in the circumstances nothing has come to our notice that hascaused us to believe that the representations under subclause (i) and (ii) of Rule 11(e)contain any material misstatement.
As stated in note 5.14(f) to the financial statements the Board ofDirectors of the Company have proposed a final dividend for the year which is subject tothe approval of the members at the ensuing Annual General Meeting. The dividend declaredis in accordance with section 123 of the Act to the extent it applies to declaration ofdividend.
ANNEXURE - A TO THE INDEPENDENT AUDITORS' REPORT
The Annexure A referred to in our Independent Auditor'sreport of even date to the members of ALUFLUORIDE LIMITED VISAKHAPATNAMfor the year ended 31 March 2022. We report that:
i) a) (A) The Company is maintaining proper records showing fullparticulars including quantitative details and situation of Property Plant &Equipment.
(B) The Company is maintaining proper records showing full particularsof intangible assets.
b) The Property Plant & Equipment have been physically verified bythe management at reasonable intervals. According to the information furnished to us nomaterial discrepancies have been noticed on such verification.
c) The title deeds of all the immovable properties disclosed in thefinancial statements are held in the name of the company.
d) The company has not revalued its Property Plant & Equipment(including the Right of Use assets) or Intangible assets or both during the year.
e) As reported under note No. 5.01C of the standalone financialstatements for the year under report and according to the information and explanationsgiven to us no proceedings have been initiated against the company for holding benamiproperty under Prohibition of Benami Property Transactions Act 1988 (as amended from timeto time) and rules made thereunder.
ii) a) Physical verification of inventory has been conducted atreasonable intervals by management. In our opinion the coverage and procedures of theverification by the management are appropriate and no material discrepancies were noticed.
b) As reported under note No. 5.18a of the standalone financialstatements for the year under report the quarterly returns/statements filed by thecompany with banks are generally in agreement with the books of the company.
iii) The Company has not made investments in provided any guarantee orsecurity granted any loans or advances which are in the nature of loans secured orunsecured to companies firms LLPs or any other parties. Consequently clauses 3 (iii)(a) (b) (c) (d) (e) and (f) of the Order are not applicable.
iv) The company has neither given any loans to the directors or anyother persons in whom the director(s) is interested nor given/provided anyguarantee/security in connection with any loan taken by directors or such other persons asper the provisions of section 185 of the Companies Act 2013. Further the investment madeby the company in an earlier year does not exceed the limits prescribed under section 186of the Companies Act 2013.
v) The Company has neither accepted any public deposits nor receivedany amounts that are deemed to be deposits in terms of sections 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules made thereunder. Thedirections issued by the Reserve bank of India are not applicable. Consequently theclause 3(v) of the order is not applicable to the Company.
According to the information and explanations given to us and on thebasis of examination of the records of the Company no order has been passed by CompanyLaw Board or National Company Law Board or Reserve Bank of India or any Court or any otherTribunal during the year under report. Consequently the clause 3(v) of the order is notapplicable to the Company.
vi) We have broadly reviewed the books of account relating tomaterials labour and other items of cost maintained by the Company pursuant to the Rulesmade by the Central Government for the maintenance of cost records under sub-section (1)of section 148 of the Companies Act 2013 and we are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have not made adetailed examination of the records.
vii) a) According to the information and explanations given to us andon the basis of examination of the records of the Company amounts deducted/ accrued inthe books of account in respect of undisputed statutory dues including goods and servicestax provident fund employees' state insurance income- tax sales-tax service tax dutyof customs duty of excise value added tax Cess and any other statutory dues have beenregularly deposited during the year by the Company with the appropriate authorities.
According to the information and explanations given to us noundisputed amounts are payable in respect of goods and services tax income tax salestax service tax duty of customs duty of excise value added tax or cess and othermaterial statutory dues which were in arrears as at 31st March 2022 for a period of morethan six months from the date they became payable.
b) As at 31st March 2022 there have been no disputed dues which havenot been deposited with the respective authorities in respect of Goods and Services taxIncome tax Service tax duty of customs duty of excise value added tax and Cess exceptthe following:
viii) According to the information and explanations given to us and onthe basis of examination of the records of the Company no transactions that are notrecorded in the books of account have been surrendered or disclosed as income during theyear in the tax assessments under the Income Tax Act 1961.
ix) a) The Company has not defaulted in any repayment of loans or otherborrowings or in the payment of interest thereon to any lender.
b) The company has not been declared as a wilful defaulter by any bankor financial institution or other lender.
c) Term loans obtained during the year have been utilised for thepurposes for which they were obtained.
d) The funds raised on a short-term basis have not been utilised forlong term purposes.
e) The company has two wholly owned subsidiaries incorporated outsideIndia. However the company has neither borrowed or taken monies from third parties toinvest or lend to any of the two subsidiaries. Further the company has not raised duringthe year any funds from others by pledging its shares in any of these subsidiaries.
x) a) The Company has not made any initial public offer or furtherpublic offer (including debt instruments) during the year under review. Consequently theclause 3(x)(a) of the order is not applicable.
b) The Company has not made any preferential allotment or privateplacement of shares or convertible debentures (fully partially or optionallyconvertible) during the year under review. Consequently the clause 3(x)(b) of the orderis not applicable.
xi) a) According to the information and explanations given to us wereport that no material fraud by the Company or on the Company have been noticed orreported during the course of our audit.
b) No report under sub-section (12) of section 143 of the Companies Acthas been filed by us in Form ADT-4 as prescribed read with rule 13 of Companies (Audit andAuditors) Rules 2014 with the Central Government.
c) According to the information and explanations given to us and basedon our examination of the records of the Company no whistle-blower complaints arereceived during the year under report.
xii) In our opinion the company is not a Nidhi Company. Consequentlythe clause 3(xii) of the order is not applicable.
xiii) According to the information and explanations given to us and onoverall examination of the records of the Company we report that all transactions withrelated parties are in compliance with the provisions of sections 177 and 188 of theCompanies Act 2013 and the related party disclosures as required by relevant IndianAccounting Standards are disclosed in the financial statements.
xiv) a) The company has an internal audit system commensurate with thesize and nature of its business. b) The reports of the Internal Auditors for the periodunder audit were considered by us.
xv) The Company has not entered into any noncash transactions with thedirectors or persons connected with them during the year under report. Consequently theclause 3(xv) of the order is not applicable.
xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Consequently the clause 3(xvi) of the order isnot applicable.
xvii) The company has not incurred cash losses in the financial yearand in the immediately preceding financial year.
xviii) There has been no resignation of the statutory auditors duringthe year under review. Consequently the clause 3(xviii) of the order is not applicable.
xix) On the basis of the financial ratios aging and expected dates ofrealization of financial assets and payment of financial liabilities other informationaccompanying the financial statements our knowledge of the Board of Directors andmanagement plans we are of the opinion that no material uncertainty exists as on the dateof the audit report that company is capable of meeting its liabilities existing at thedate of balance sheet as and when they fall due within a period of one year from thebalance sheet date.
xx) a) In terms of the information and explanations given to us andbased on the books of account/records examined by us the company has no ongoing projectsunder CSR activities. Further there is no unspent balance to spent under CSR Activities asat the year. b) In terms of the information and explanations given to us and based on thebooks of account/records examined by us the company has not undertaken any ongoingprojects towards CSR activities as per the provisions of section 135 of Companies Act.Accordingly the clause 3(xx)(b) of the order is not applicable.
xxi) This paragraph is not applicable in case of standalone financialstatements relevant Indian Accounting Standards are disclosed in the financial statements.
Annexure "B" to the Independent Auditors' Report
Report on the Internal Financial Controls over Financial Reportingunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")
We have audited the internal financial controls over financialreporting of ALUFLUORIDE LIMITED VISAKHAPATNAM ("the Company") as of31st March 2022 in conjunction with our audit of the standalone financial statements ofthe Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Board of directors of the company is responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India(ICAI'). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the internal financialcontrols over financial reporting of the company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by ICAI and the Standards onAuditing prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Ind AS financial statements for external purposes inaccordance with generally accepted accounting principles. A company's internal financialcontrol over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;
(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of Ind AS financial statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorizations of management and directorsof the company; and
(3) provide reasonable assurance regarding prevention or timelydetection of unauthorized acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.
Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2022 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.